• Emergency COVID-19 Support Programme: another EUR 76 million for the SANAD Fund
• Expansion of the Fund’s regional scope to include Sub-Saharan Africa
• Counteracting the increased pressure of migration in Africa

KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and within the scope of the Emergency COVID-19 Support Programme, is allocating another EUR 76 million to the SANAD Fund. It provides micro, small and medium-sized enterprises (MSMEs) with short-term liquidity and long-term financing as well as equity capital through local financial institutions in North Africa and the Middle East – even in local currency. The fund also engages in investment. With immediate effect, limited support will also be provided to selected countries in Sub-Saharan Africa (Côte d’Ivoire, Ghana, Kenya, Rwanda, Senegal and Uganda)

MSMEs are a key economic driver and have come under intense pressure in the coronavirus crisis. This is because governments in these countries responded to the spread of COVID-19 by closing borders, imposing curfews and closing public facilities, shopping malls and markets with devastating effects on the economy. Further support therefore aims more than ever to improve employment and income development as well as the living situation of the population in the respective countries. Last but not least, the measures also reduce the pressure of migration that weighs heavily on African societies.

“By financing small and medium-sized enterprises in North Africa and the Middle East, the SANAD Fund is helping to mitigate the instabilities and social tensions that have arisen since the Arab Spring in 2011 as a result of high unemployment, inequality and poverty among the population. These have worsened during the current COVID-19 crisis in this region and also in Sub-Saharan African countries. Strong support is therefore needed to counteract the economic downturn,” said Dr Günther Bräunig, Chief Executive Officer of KfW Group.

Since the SANAD Fund was established in 2011, Germany has contributed a total of EUR 253 million to the Fund. In addition, KfW has also supported SANAD on behalf of the EU with EUR 52 million to date. Loans totalling more than USD 950 million have been granted, financing more than 240,000 loans to businesses and households in North Africa and the Middle East. The Fund currently works with 38 partner institutions in 8 countries.

The Fund is set up as what is known as a structured fund with various risk tranches and thus also offers investment opportunities to private and semi-public investors. Through these third-party and market funds as well as returns and interest income, the financing potential is multiplied.

More information on KfW Development Bank is available at: www.kfw-entwicklungsbank.de/en